30 January 2017
PROJECT FINANCING AND OFFTAKE MOU SIGNED WITH RUSSIA’S ROSATOM
Magnis Resources Limited (“Magnis” or the “Company”) (ASX: MNS) is pleased to announce another key milestone in the development of its Nachu Graphite Project in Tanzania with the signing of a Memorandum of Understanding (MOU) with Russia’s ROSATOM International Network (ROSATOM) for project financing and offtake of Super Jumbo and Jumbo flake graphite.
This MOU is a significant development for Magnis and positions the Company alongside a highly regarded group that is a world leader in the construction and operating of nuclear reactors with flake graphite being a key material used in nuclear reactors.
Chairman of Magnis Frank Poullas commented: “Today’s announcement is a key step towards a binding offtake agreement for our Super Jumbo and Jumbo products and potential financing with the world’s largest Nuclear Power technology company.”
“ROSATOM is the world leader in the development and construction of nuclear reactors with over US$130 billion worth of orders in place. Larger flake graphite which our Nachu Project will produce is a key material used in these nuclear reactors and it is highly sought after. Our project therefore is strategically important to ROSATOM over the longer term.”
“The Magnis board looks forward to a long fruitful relationship with ROSATOM and our focus now is to move the MOU into a binding offtake agreement.”
President of ROSATOM International Network, Alexander Merten, added: “We are pleased to enter into this MoU with Magnis. ROSATOM is known for the quality of its products and we are seeking to develop long term partnerships with the highest quality graphite producers in the world. Magnis has these key attributes.”
Key Terms of the Memorandum of Understanding
Under the agreement, both organisations will work together towards a binding offtake agreement once further negotiations take place and certain milestones are met. Interest revolves around the Super Jumbo (+500 microns) and Jumbo (+300 microns) flake graphite sizes. The larger flake sizes are currently being consumed by ROSATOM in several of its business divisions including Nuclear Power generation, aerospace and creating composites.
Discussions are continuing on the project financing of the Nachu Graphite Project in tandem with offtake discussions.
ROSATOM is the Russian Federation national nuclear corporation bringing together approximately 400 companies and R&D institutions. With over US$130 Billion in orders, ROSATOM is currently the largest constructor of Nuclear Reactors in over 37 countries. ROSATOM has engineering, nuclear medicine, machine building, non-nuclear equipment manufacturing, composite materials, uranium mining, power generation and fuel and enrichment businesses.
ROSATOM in Tanzania
ROSATOM through its subsidiary Uranium One is the owner of the Mkuju River uranium project located in Southern Tanzania which was acquired in 2011 from ASX Listed Mantra Resources. Over US$1 Billion was paid for Mantra Resources despite the Fukushima incident taking place during the transaction.
Magnis Resources Limited
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